Mercer Reveals Average Salary in China Set to Increase by 4% in 2026

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10/28/2025 - 10:00 PM

SHANGHAI--(BUSINESS WIRE)-- Mercer, a business of Marsh McLennan (NYSE: MMC) and a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people, today revealed that the average employee salary in China is projected to rise to 4.0% in 2026, up from an actual 3.8% in 2025.

Mercer’s Total Remuneration Survey 2026 reveals remuneration trends across 4,000 companies in China. The survey shows that while salaries are set to increase modestly in 2026, more companies (91%) plan to provide salary increases in 2026 than in 2025 (90%).

Despite facing a more challenging economic outlook, the top factors influencing salary increases in 2026 are the same as last year: individual performance, salary range, inflation, and the organization's competitiveness in the job market. However, an increasing number of companies now offer flexible benefits as part of their remuneration package, such as life insurance (71.5%), accident insurance (96.3%), and supplemental health insurance (83.6%).

From an industry lens, high-tech leads the pack with an expected salary increase of 4.9%, followed by petroleum at 4.4%, life sciences at 4.3% and chemicals at 4.2%. By contrast, consumer goods and automotive are below the national average, with projected increases of 3.9% and 3.7% respectively. Projected salary growth mirrors China’s shift toward high-quality development, with companies increasingly prioritizing technical expertise, specialized skills, and innovative capabilities.

Regional outlooks vary across city tiers. First-tier cities generally expect salary growth to be in line with or slightly above the national average in 2026, ranging from 4.0% to 4.3%. Several second-tier cities — including Nanjing, Tianjin, Suzhou/Kunshan and Changzhou — anticipate somewhat lower growth (3.7%–3.9%), while Wuxi’s outlook aligns with the national average.

Elley Cao, Mercer China’s Head of Career Products, said, “Voluntary turnover in the first half of 2025 decreased to 3.4% from 3.9% last year, indicating softer talent mobility and a more stable labor market. China is shifting from rapid growth to a more sustainable, innovation-led model amid deepening reforms and external uncertainty. The modest uptick in projected 2026 pay reflects cautious optimism; companies should reinforce foundations, boost resilience and agility, and align compensation and talent systems with strategic priorities to support long-term competitiveness.”

About Mercer
Mercer, a business of Marsh McLennan (NYSE: MMC), is a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people. Marsh McLennan is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of over $24 billion and more than 90,000 colleagues, Marsh McLennan helps build the confidence to thrive through the power of perspective. For more information, visit www.mercer.com or follow on LinkedIn and X.